Analyst Sachin Salgaonkar from Bank of America Securities reiterated a Buy rating on Makemytrip (MMYT – Research Report) and decreased the price target to $107.00 from $120.00.
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Sachin Salgaonkar has given his Buy rating due to a combination of factors that suggest a positive outlook for Makemytrip despite current challenges. The ongoing conflict between India and Pakistan has caused disruptions in travel, particularly affecting key tourist destinations in the North and West of India. However, Salgaonkar believes this impact is temporary and that the travel demand remains robust, especially among mid-to-high-end Indian consumers traveling internationally, which is not affected by the conflict.
Salgaonkar has adjusted revenue estimates slightly downward to account for the current travel disruptions and a slower pace of margin improvement. Despite these adjustments, the strong underlying travel demand and consumer intentions to travel frequently suggest a resilient market. The survey data indicating that a significant portion of consumers plan to travel at least once this year supports the Buy rating, as does the high usage of Makemytrip and GoIbibo for travel bookings, which positions the company well for future growth.
According to TipRanks, Salgaonkar is a 5-star analyst with an average return of 23.3% and a 65.63% success rate.